Choosing The Best Credit Card

Just about any one of the millions of consumers in the United States can tell you what a charge card is. Since the mid 1900's, credit card accounts have become a staple in American society. However, for those Americans who are new to credit cards, what factors are important when filling out a new charge card application?

The first thing that Americans should look at before filling out a new credit card application is their own credit score. All Americans have a credit score that allows the bank to gauge the amount of risk they will be taking on when giving a particular consumer a credit card account. This step is extremely important because too many declined charge card account applications will lead to a harmful affect on the credit score that consumer carries.

Once consumers have become aware of their credit score, it's time to start comparing credit cards. It is important for Americans when applying for new credit card accounts not to apply for the first offer they see. Although the credit card account market is a fairly competitive one, each different charge card account will offer unique perks to having the credit card account. This means that for consumers to be sure they are getting the best credit card they may qualify for, they must compare the different options available. When comparing the different credit card accounts available, it's important that consumers look at these things:

Credit Needed - First and foremost, people should take a look at the range of credit needed for people to get approved for that specific charge card. This is an important step to ensure that Americans do not harm their credit scores by getting too many declined applications.

Interest Rates - Yes I said Interest Rate(s) with the S! Every credit card will have different types of interest rates. These interest rates are generally the purchase annual percentage rate (annual percentage rate applied to balances acquired by making a standard purchase with the charge card account), balance transfer rate (the interest rate that is applied to balances acquired by using the credit card for balance transfers) and the default interest rate (the interest rate that people will pay if they default on the charge card). There are a few other types of APRs which I will write about later. However, these three are the main types.

Annual Fees - Many credit card products come with a fixed annual fee that Americans will have to pay to carry the credit card account. Generally, balance transfer credit cards and reward credit cards will have higher annual fees to offset the cost of the added perks associated with these account types.

Rewards - Because of the overwhelming amount of competition in the charge card account industry, banks have been forced to offer great rewards benefits when Americans utilize their credit card accounts. Before applying for new credit cards, consumers should make sure that the rewards programs are ones that they will want to take advantage of.